Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Poringland. Inevitably, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Poringland have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Poringland lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Poringland with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with procure Poringland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Luke owned a high value apartment in Poringland being marketed with a lease of a few days over 61 years unexpired. Luke on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Luke to invoke his statutory right. Luke procured expert advice and secured an acceptable deal informally and sell the property.
In 2011 we were e-mailed by Mrs U Martinez who, having bought a basement flat in Poringland in August 1999. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar properties in Poringland with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected yearly. The lease elapsed on 6 July 2100. Considering the 75 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Mrs Jade Carter took over the lease of a studio flat in Poringland in June 2006. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Poringland with a long lease were valued about £173,800. The average ground rent payable was £60 billed annually. The lease concluded in 2080. Considering the 55 years outstanding we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.